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Itochu Corporation Unsponsored Adr (ITOCY)
:ITOCY
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Itochu
(OTC:ITOCY)
Rating:77Outperform
Price Target:―
Itochu (ITOCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$74.91B
Dividend Yield1.83%
Average Volume (3M)3.12K
Price to Earnings (P/E)12.8
Beta (1Y)0.52
Revenue Growth-2.09%
EPS Growth12.12%
CountryUS
Employees113,733
SectorIndustrials
Sector Strength86
IndustryConglomerates
Share Statistics
EPS (TTM)8.08
Shares Outstanding792,445,000
10 Day Avg. Volume6,292
30 Day Avg. Volume3,117
Financial Highlights & Ratios
PEG Ratio-6.46
Price to Book (P/B)1.31
Price to Sales (P/S)0.00
P/FCF Ratio8.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Itochu Business Overview & Revenue Model
Company DescriptionItochu Corporation, headquartered in Tokyo, Japan, is a prominent global trading and investment company. It operates in various sectors including textiles, machinery, metals, minerals, energy, chemicals, food, general products, real estate, information technology, and finance. The company is known for its diversified portfolio, managing a wide range of businesses from resource exploration and development to retail and consumer services. Itochu's core products and services include the import and export of goods, domestic and overseas investments, and the provision of logistics and supply chain solutions.
How the Company Makes MoneyItochu Corporation generates revenue through its diversified operations across multiple sectors. The company's revenue streams are primarily derived from trading and distributing goods, investing in various industries, and providing comprehensive supply chain solutions. Key revenue streams include the sale of textiles, machinery, metals, energy products, and food commodities. Additionally, Itochu benefits from strategic partnerships and joint ventures that enhance its global reach and market presence. The company's investments in energy and natural resources, as well as its involvement in real estate and infrastructure projects, further contribute to its earnings. Itochu leverages its extensive network and expertise in logistics to optimize supply chains, thereby adding value to its trading operations.
Itochu Earnings Call Summary
Earnings Call Date:May 02, 2025
(Q2-2025)
| % Change Since: 3.64%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance with notable increases in net profit, core profit, and cash flow, supported by strategic growth in key segments. However, challenges remain in certain areas such as Metals & Minerals, Energy & Chemicals, and North American operations.Q2-2025 Updates
Positive Updates
Increase in Consolidated Net Profit
Consolidated net profit increased by 6% or JPY 25.5 billion year-on-year to JPY 438.4 billion, achieving 50% of the annual forecast.
Strong Core Profit and Cash Flow Performance
Core profit reached JPY 396 billion, maintaining the second highest profit level after FYE 2023. Core operating cash flows exceeded JPY 500 billion for the first time, reaching JPY 513 billion, setting an all-time high.
Segment-Wise Profit Growth
Textile, Machinery, Food, The 8th, and others saw profit increases. Notable growth drivers included apparel business, strong car sales, and pork business turnaround.
Record Operating Cash Flows
Operating cash flows reached JPY 578.6 billion, setting a record high due to stable performance in multiple segments and dividends from investments.
Shareholder Returns
Increased dividend per share to JPY 200, a JPY 40 increase, marking the 10th consecutive year of dividend increase. Largest ever share buybacks of JPY 150 billion underway.
Negative Updates
Profit Decline in Metals & Minerals and Energy & Chemicals
Metals & Minerals and Energy & Chemicals segments saw a decrease in profit due to operational issues and absence of previous year's extraordinary gains.
Challenges in North American Construction Materials
Profit down due to higher costs and market downturn affecting the North American Construction Materials business.
Flat Performance in ICT and Financial Business
Results were almost flat year-on-year due to absence of extraordinary gains recorded in the previous fiscal year and lower profit in the mobile phone business.
Company Guidance
During the Q2 2025 earnings call, Keita Ishii, President of ITOCHU Corporation, outlined a robust first half performance with consolidated net profit increasing by 6% year-on-year to JPY 438.4 billion, reaching 50% of the annual forecast. Core profit was reported at JPY 396 billion, marking the second highest level after FYE 2023, with notable contributions from sectors like Textile, Chemicals, Food, and ICT. Operating cash flows set a record high at JPY 578.6 billion, driven by strong performances in Machinery and Food. Despite a net investment cash outflow of JPY 192 billion, core free cash flows remained positive at JPY 321 billion. The company maintained a strong financial position with total shareholders' equity rising to JPY 5.6 trillion and a slight improvement in net DER to 0.47x. Shareholder returns were emphasized with a commitment to a 50% payout ratio and a dividend increase to JPY 200 per share, alongside significant share buybacks totaling JPY 150 billion. Looking forward, ITOCHU aims to strengthen its profit base and continue growth investments to meet fiscal year targets and enhance corporate value.Itochu Financial Statement Overview
Summary
Itochu demonstrates strong financial health and operational efficiency. The company shows consistent revenue growth and profitability, supported by a stable balance sheet and robust cash flow generation. While leverage is moderate, the company effectively utilizes its equity to generate returns. Continued focus on operational efficiency and capital management would sustain its strong financial position.Income Statement
Itochu shows strong financial performance with a healthy revenue growth rate of 3.69% TTM. The gross profit margin is solid at 16.02%, and the net profit margin stands at a commendable 5.69%. EBIT and EBITDA margins are robust at 4.94% and 8.72% respectively, indicating efficient operations and profitability. However, slight pressure on EBITDA margin compared to EBIT margin suggests potential operational cost considerations.85
Very Positive
Balance Sheet
The balance sheet is stable with an equity ratio of 38.88%, reflecting a strong capital base. The debt-to-equity ratio is 0.62, indicating moderate leverage, which is manageable but should be monitored. Return on equity is impressive at 14.79%, showing effective utilization of shareholder funds.78
Positive
Cash Flow
Itochu's cash flow is strong with a significant free cash flow growth rate of 15.36%. The operating cash flow to net income ratio is 1.31, indicating healthy cash generation relative to net income. The free cash flow to net income ratio is 1.08, underscoring the company's ability to convert earnings into free cash flow.82
Very Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.55T | 14.03T | 13.95T | 12.29T | 10.36T | 10.98T |
| Gross Profit | 2.33T | 2.23T | 2.13T | 1.94T | 1.78T | 1.80T |
| EBITDA | 1.27T | 1.29T | 1.25T | 1.28T | 968.57B | 1.18T |
| Net Income | 827.31B | 801.77B | 800.52B | 820.27B | 401.43B | 501.32B |
Balance Sheet | ||||||
| Total Assets | 14.39T | 14.49T | 13.11T | 12.15T | 11.18T | 10.92T |
| Cash, Cash Equivalents and Short-Term Investments | 613.60B | 689.06B | 688.80B | 724.83B | 598.88B | 665.40B |
| Total Debt | 3.46T | 4.40T | 4.01T | 3.92T | 4.22T | 4.06T |
| Total Liabilities | 8.25T | 8.50T | 7.65T | 7.39T | 7.31T | 7.08T |
| Stockholders Equity | 5.60T | 5.43T | 4.82T | 4.20T | 3.32T | 3.00T |
Cash Flow | ||||||
| Free Cash Flow | 894.77B | 775.56B | 743.98B | 644.02B | 730.88B | 678.61B |
| Operating Cash Flow | 1.09T | 978.11B | 938.06B | 801.16B | 895.90B | 878.13B |
| Investing Cash Flow | -419.59B | -205.99B | -453.81B | 38.64B | -207.30B | -248.77B |
| Financing Cash Flow | -673.60B | -413.33B | -500.08B | -846.71B | -728.77B | -575.48B |
Itochu Technical Analysis
Positive
103.61
Price Trends
102.35
Positive
96.36
Positive
98.25
Positive
Market Momentum
0.22
Positive
55.07
Neutral
79.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITOCY, the sentiment is Positive. The current price of 103.61 is above the 20-day moving average (MA) of 103.49, above the 50-day MA of 102.35, and above the 200-day MA of 98.25, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 79.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITOCY.
Itochu Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $147.08B | 26.29 | 33.56% | 1.98% | 6.30% | 0.81% | |
77 Outperform | $74.91B | 12.83 | 15.55% | 1.83% | -2.09% | 12.12% | |
65 Neutral | $10.56B | 15.51 | 5.57% | 1.96% | 2.71% | -26.32% | |
63 Neutral | $81.81B | 19.20 | 94.75% | 1.92% | -24.93% | ― |
* Industrials Sector Average
Performance Comparison
ITOCY
Itochu
104.62
5.39
5.43%
MMM
3M
152.24
52.68
52.91%
HON
Honeywell International
232.88
24.04
11.51%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.